The Improvement Of Present Chinese Sponsor System

The entire establishment of sponsor system is a big revolution in Chinesesecurities issuing regulation. Based on the "upcoming and changing" characterof Chinese capital market, and under the thought of general development of Chinesecapital market, China Securities Regulatory Commission prompts this to furtherprotect the legal advantage of the investors (especially the public investors) ,and enhance the quality of the listing companies. The sponsor system summarizesthe experience from the emplacement of authorization system, and establishes theresponsibility requirement and investigation requirement. This system hands a moremarketable system framework to the persistent, stable and healthy development forthe capital market. When considering that the sponsor system is an external legal system, it is usedin the main board for the first time, it lands the responsibility to the individual,the assistant system has not been established, and the trust system does not comeinto being, this system has some parts that need to be supplemented. This articlefocuses on the sponsor system, sticks to the problems when using the process of thissystem, and the real situation in Chinese capital market. This article has fivechapters. The first chapter introduces the origination, definition and securities issuingsystem development of the sponsor system, and introduces the present sponsor system. 4This chapter also discusses the reason of introducing sponsor system. The second chapter practically analyzes the sponsor system, introduces manykinds of foreign sponsor system. All these could be the reference for the perfectionof China's sponsor system. The third chapter focuses on the management of the sponsor's qualification,which is the display on the qualification of sponsor institutions and sponsors, andthe management on the sponsor's qualification, etc. This chapter also discusseshow to improve the management of the sponsor's qualification and protect theadvantage of these sponsors. The fourth chapter focuses on the applicable scope of sponsor's responsibility,responsibility period and the definition of the responsibility. This chapter alsoconsiders the rights and obligations of the sponsors, and offers some unreasonablepoints in today's system. This chapter argues that the establishment of thesponsor system should accompany the real situations in China's capital market.The fifth chapter says if the tenet of sponsor system is totally exerted, we muststrongly regulate all the participants in this market: securities regulatorycommission, sponsors, issuing companies and their true controllers, and the otherparticipating institutions. Also we must strength the relative legal system andexecution of these laws. 5...